CipherTrace Releases DeFi Compliance Solution Built on Chainlink to Abide by OFAC Sanctions

CipherTrace Releases DeFi Compliance Solution Built on Chainlink to Abide by OFAC Sanctions Requirements

Because Chainlink is already used widely in the DeFi space, it will make “integrating compliance data as simple as possible for DEX and other protocols.”

Cryptocurrency intelligence company CipherTrace has announced the release of decentralized finance (DeFi) compliance solution.

CipherTrace DeFi Compli is the solution that enables decentralized exchanges (DEXs) like Uniswap, Sushiswap, and other DeFi applications to abide by the Office of Foreign Assets Control (OFAC) sanctions requirements.

This solution is using Chainlink (LINK), which is used widely in the DeFi space to provide real-world data.

Daniel Kochis of Chainlink Labs pointed to the lack of compliance tools in the DeFi sector and that this solution would make “integrating compliance data as simple as possible” for decentralized protocols, including DEXs.

As per the official announcement, the regulatory spotlight is on DeFi because of the growing number of hacks on DeFi protocols.

The company further cites the use of DeFi to launder the funds stolen from the centralized exchanges, such as the $281 million KuCoin hack, as the reason for launching a DeFi compliance oracle service that makes for easy integration with existing DeFi frameworks.

“This oracle delivers CipherTrace’s source-signed compliance data directly on-chain to your smart contract,” reads the description. It covers Ethereum Mainnet, Ethereum Kovan Testnet, Binance Smart Chain Mainnet, and Polygon (MATIC) Mainnet.

“The $40B locked in DeFi protocols puts an even bigger target on DeFi exchanges and protocols.”

“Ensuring that sanctioned addresses cannot use DeFi to fund weapons of mass destruction programs should be among DEXs’ chief concerns right now. CipherTrace’s DeFi Compli regulatory compliance oracle on Chainlink can support DeFi protocols in achieving the compliance needed to ensure crypto’s long-term viability.”

Dave Jevans CipherTrace CEO

Jevans points to Valerie Szczepanik, Head of Strategic Hub for Innovation and Fintech at US SEC’s call for DeFi structures to be subject to various laws, saying, “The time for DeFi to adopt compliance solutions is now, or risk facing the consequences.”

“Szczepanik’s statements suggest imminent enforcement of sanctions as well as AML and CTF laws.”

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Author: AnTy

Crypto Hardware Wallet Trezor Brings Privacy to its Users with CoinJoin & CoinControl

Crypto Hardware Wallet Trezor Brings Privacy to its Users with CoinJoin & CoinControl

Cryptocurrency hardware wallet, Trezor is bringing privacy to its users through CoinJoin.

CoinCoin is a trustless method that combines multiple Bitcoin payments from multiple senders into single transactions making it difficult for outside parties to determine the origin of the coins. Trezor tweeted,

“We always strive to advance your privacy! CoinJoin will obscure the sources and destinations of your transactions.”

However, some are concerned about the fact that cryptocurrency exchanges like Binance and Paxos Global actually discourage the use of the bitcoin mixing services and, in the past, have flagged consumers who have made use of these services. For Trezor, the heart of the matter here is,

“Do you want to use a service that blocks your transaction because you care about your privacy?”

Another step towards maximizing Trezor users’ privacy also includes a CoinControl feature that puts the user in complete charge of compiling their transactions.

When sending BTC to someone, this feature allows you to control which of your addresses sends the coins and, even more specifically, which unspent outputs will be sending inputs.

“In the future, the combination of Tor Switch, CoinControl, and CoinJoin will guarantee you the top level of privacy and security, respected by our customers.”

Besides privacy, Tezos (XTZ) also announced that they are also bringing full node support to its wallet this year. Users will be able to connect their own full node, which allows them to fully validate transactions and blocks and help the network to the Trezor hardware wallet.

In the first stage, they will implement Electrum API integration which will be then followed by Bitcoin Core.

Another addition includes the Trezor Suite Mobile app for Android, which will have most of the Trezor Suite features “bringing accessibility and user experience to the whole new level.”

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Author: AnTy

Billionaire Investor Daniel Loeb’s Third Point “Outed as a HODLr”

Billionaire investor Daniel Loeb’s Third Point LLC is the latest firm to own cryptocurrency.

Last month, Loeb took to Twitter to share that he has been “doing a deep dive into crypto.” On the reports of Third Point owning crypto, Loeb tweeted, “Outed as a hodlr.”

The $17.6 billion hedge fund holds an unknown amount of cryptocurrency through crypto exchange Coinbase’s custody arm.

The biggest crypto exchange in the US is all set to go public through a direct listing on Nasdaq next week. The company had said that it expects “meaningful growth” thanks to custody in part, driven by the increased institutional interest in the crypto asset class.

In its earnings call, Coinbase revealed that out of the $223 billion held by the exchange, $122 billion belongs to institutions.

Additionally, in Q4 of 2020, 64% of its volume came from institutions which is a drastic change from Q1 of 2018 when retail accounted for 80% of the volume.

Coinbase helped several big names accumulate Bitcoin, including Tesla, MicroStrategy, Meitu, Ruffer Investments, and Paul Tudor Jones.

Three Point’s crypto exposure, it had said, could be direct or indirect through derivatives contracts and is also open to staking and lending cryptos.

The company is also backing crypto and stock exchange eToro, which announced that it is going public through a merger with FinTech Acquisition Corp. V ( FTCV).

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Author: AnTy

Bitcoin Price to Rise as it Captures Bigger Share of ‘Anti-fiat Market’ Driven by ‘Stimulated Environment’

“Strong” crypto performance leads to rising interest among institutions, including university endowments and foundations, a trend that will continue “at an accelerated pace,” says experts. As for the govt. banning Bitcoin, “Crypto Mom,” says that would be “foolish.”

Bitcoin is trading above $60,000, giving off strong bullish signals with traders getting in on this action.

According to Dhaval Joshi, chief strategist for BCA Research’s Counterpoint product, the price of Bitcoin will rise as it becomes a bigger share of what he calls the $15 trillion anti-fiat market, currently dominated by gold.

“So long as we have a fiat money system, there will be demand for an ‘anti-fiat’ asset that is a hedge against a debasement of the fiat money system,” said Joshi, who called cryptocurrencies “the new vigilantes to prevent rampant inflation.”

Currently, Bitcoin accounts for 10% of this anti-fiat market but, “as this share doubles or trebles, it arithmetically requires a doubling or trebling of cryptocurrency prices.”

He recommends investors to hold $1 of crypto for every $3 of gold, which implies 25% of the precious metal market, putting BTC at $120k.

Tipping Point

The prices are rising as the institutionalization of the crypto space gains speed.

During a MarketWatch virtual panel discussion, “How to Invest in Crypto,” Tom Jessop, head of Fidelity Digital Assets at Fidelity Investments, said the maturation and adoption of digital assets as a class of investments would continue “at an accelerated pace.”

According to him, ultralow interest rate and easy-money policies helped drive momentum into bitcoin, which are increasingly being seen as alternatives to assets like bonds that offer meager yields.

“Pandemic, quite frankly, was a catalyst for institutional adoption, and specifically bitcoin and the narrative, or use-case, around digital gold,” Jessop said. And “we’re not going to get out of this stimulated environment anytime soon,” he added. “I think we’ve reached a tipping point.”

As Mark Yusko, founder and CEO of Morgan Creek Capital Management, told MarketWatch, “We really believe that we’ll look back five years from now, and it will be deemed fiduciarily imprudent to have zero exposure to digital assets.”

With Bitcoin becoming a trillion-dollar asset and total crypto market cap surging past $2.1 trillion, “you can’t ignore it anymore,” Yusko said. “I really think we are at an inflection point.”

According to him, crypto performance has been “so strong” that even a small allocation can make a big difference. And Yusko has seen a rising interest among institutional investors, including university endowments and foundations.

A Good Regulatory Framework

When it comes to the regulatory front, it might not be of big significance as SEC commissioner Hester Peirce says it would be “foolish” to ban Bitcoin.

“I think we were past that point (of banning Bitcoin in the US) very early on because you’d have to shut down the internet.”

“I don’t see how you could ban it. You could certainly make the effort. It would be very hard to stop people from doing it.”

“So I think it would be a foolish thing for the government to try to do that.”

According to her, technology is likely to outpace the government’s attempt to limit the use of BTC.

During the panel discussion, while reiterating that the US remains “behind the curve” in regulating crypto, Peirce, aka “Crypto Mom,” said Gary Gensler as SEC Chairman might push it in the right direction.

“I’m optimistic with a new chairman coming in with a deep knowledge of these markets that is something we could do together—build a good regulatory framework.”

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Author: AnTy

SushiSwap is Ready with its Own V3 Under the Fully Open-source MIT License

The ETA for gas optimization, internal audit, and formal verification of “MIRIN: SushiSwap AMMv3” is in late May.

While Uniswap creator Hayden Adams can’t stop talking about the upcoming V3 as he fired up a thread to share, “I don’t think the insane efficiency of Uniswap v3 has sunk in yet,” SushiSwap can’t let its competitor hog all the market attention.

So, SushiSwap responded with its own V3 that will allow assets to be utilized in swaps, loans, and options.

SushiSwap’s V3, according to traders, can act as a catalyst for its price. As of writing, SUSHI’s price is trading around $14.91, down over 36% from its all-time high of $23.5 in the mid of last month.

Sushi’s V3 has been named MIRIN, “a light alcohol particularly used to create sauces in Japanese cuisine.”

According to Github, SushiSwap’s answer to Uniswap’s “up to 4000x capital efficiency” is Deriswap which was introduced by YFI’s Andre Cronje. YFI -2.10% / USD YFIUSD $ 44,510.17
Volume 331.58 m Change -$934.71 Open $44,510.17 Circulating 36.63 K Market Cap 1.63 b
8 h SushiSwap is Ready with its Own V3 Under the Fully Open-source MIT License 1 d Revolut Adds 11 New ‘Hot’ Cryptos Including DeFi Tokens for UK and EU Users 1 w Ethereum Wallet, Dharma, Integrates with DeFi Blue-Chips for Direct Access to Bank

Deriswap basically combines swaps, options, and loans into a capital-efficient single contract, allowing interaction between the two assets that make up the pair.

In MIRIN, every pair can have one Public Pool and multiple Franchised Pools. For liquidity pool creators, two types of new curves, ‘Arbitrary Weighted Constant Product’ and ‘Mix of Constant Product + Sum Model,’ which is a work in progress and being fine-tuned for stable coins, are added to maximize the capital efficiency.

With an ETA of mid-April, V3 will provide an automatic yield rebalancing tool powered by K3PR technology. “This can benefit you, since you can add a dedicated job to seek out the best LP yields for you,” it states.

The roadmap further mentions test coverage estimated to be done by late April, gas optimization & internal audit is expected to be completed by mid-May, and before the month is over, formal verification of Mirin.

Uniswap is targeting the launch for May 5th, while L2 deployment on Optimism to reduce fees will come a week later.

Unlike Uniswap’s v3 launch under the Business Source License 1.1 to limit the use of its source code for up to two years which raised some questions, SushiSwap, which started out as a Uniswap clone, will be distributed under the fully open-source MIT License.

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Author: AnTy

Institutions Eyeing High Yield Through Bitcoin Futures Trading at a “Very Steep Contango,” JPMorgan

Institutions Eyeing High Yield Through Bitcoin Futures Trading at a “Very Steep Contango,” JPMorgan Report

JPMorgan Chase has released its new weekly report on Bitcoin, highlighting its steep futures curve.

The big banks are reportedly eyeing Bitcoins’ contango, a situation where the futures price of an asset is higher than the spot price. As Su Zhu, the CEO of Three Arrows Capital, put it, “Bankers coming for that juicy yield.”

“As of this writing, the June CME Bitcoin contract offers ~25% annualized slide relative to spot. The richness of futures is even more acute if we broaden our view to include unrelated exchanges, where carry can be as high as 40+%,” stated JPM analysts.


According to the JPMorgan report, the growth and gradual maturation of the crypto market has generated interest in derivatives and other sources of leverage. The trillion-dollar asset naturally dominates the crypto futures space.

The spread in the price on the spot market and futures market is because the latter is “out growing the pace of money willing to come in to arbitrage this spread. the market has grown super fast,” with open interest (OI) soaring to $25 billion which was mere $2 billion a year ago, explained trader CL.

“The growth has largely been demand for going long, thus they push up the premium.”

Also, this yield implied by Bitcoin futures is substantially higher than all the major currencies across developed as well as emerging markets. “The situation is even more pronounced on offshore exchanges,” JPM added.

This is the reason hedge funds continue to be record short on Bitcoin while being long on the spot.


According to JPMorgan strategists, this attractive pricing hasn’t been arbitraged away because of counterparty and repatriation risk in offshore markets. Additionally, traditional players don’t really have ways to gain spot BTC exposure except for GBTC, which is the primary source but has its own set of premium issues. This premium has been negative for more than a month now.

This is where the Bitcoin exchange-traded fund in the US comes into the picture, as a “key” to normalize the price of Bitcoin futures, wrote the analysts.

Interestingly, GBTC premium went negative not long after several Bitcoin ETFs started trading in Canada, with the first one, the Purpose BItcoin ETF (BTCC), accumulating 17,013 BTC in less than two months.

While reducing barriers to entry and bringing new potential demand into the asset class, JPMorgan says the risk factor worth considering here is that “it would also make basis trading much more efficient and attractive at current pricing, particularly if those ETFs can be purchased on margin. We would expect that to bring more basis demand into futures markets, especially the CME but also potentially other onshore exchanges.”

This will normalize the funding spreads and can broaden the base of participants in BTC derivatives more generally, given that people are already willing to pay 30-40% annually to source levered long exposure, it added.

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Author: AnTy

Total Value Locked (TVL) in DeFi Surpasses $100 Billion; Revenue is Ready to Hit $1 Bln

Total Value Locked (TVL) in DeFi Surpasses $100 Billion; Revenue is Ready to Hit $1 Bln

Decentralized finance (DeFi) continues to grow at a fast pace, with more and more value getting locked up in the applications.

Today, the total value locked (TVL) in them has surpassed a whopping $100 billion, as per DeFi Llama. While DeFi Pulse currently shows just above $50 billion, it covers about half of the projects listed by DeFi Llama.

Lending protocol, Compound Finance, dominates the DeFi TVL with over $10 billion.

Interestingly, the sector’s real growth started only last summer when yield farming drew in the crowd with exceptionally high APYs. At the beginning of 2020, the TVL was a mere $675 million and about $20 billion at the start of this year.

Today, there are nearly 25 DeFi projects with more than $1 billion in TVL.

The growth of DeFi intensified this year as other blockchains like Binance Smart Chain (BSC) provided users, particularly smaller ones, with a cheaper alternative to Ethereum (ETH). As of writing, BSC has about $27 billion in TVL.

Much like TVL, DeFi’s other metrics recorded similar growth, including the users who are aiming to hit the 2 million threshold after hitting the 1 million milestone only in early December, as per Dune Analytics.

Before the 2020 summer, only a handful of people were using DeFi projects, but today Uniswap (UNI) alone has nearly 1.3 million users. Meanwhile, Compound (COMP), 1inch (1INCH), Kyber (KNC), Balancer (BAL), and SushiSwap (SUSHI) all have between 100k to 300k users.

As more and more people come into the space and use these applications, the cumulative revenue of these protocols is also increasing, now aiming for $1 billion.

Popular DEX Uniswap yet again leads with more than $90 billion in revenue, up from just $4 million in July 2020. Other notable revenue generators include Compound, SushiSwap, and Aave earning between $30 to $40 billion.

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Author: AnTy

Bitcoin Aims for k and Ether Breaks Out into a New ATH as the Market Readies for Coinbase Listing

Bitcoin Aims for $62k and Ether Breaks Out into a New ATH as the Market Readies for Coinbase Listing

Funding rates are soaring as market sentiments get bullish ahead of Coinbase’s historic listing on Wednesday next week. Exchange tokens like FTT and BNB are enjoying this by hitting new highs every other day.

The market is seeing a lot of green this weekend after having a rough start to the week. Bitcoin price surged past $61,200, nearing its all-time high of about $61,700 as the crypto market gained momentum.

Ethereum actually broke out into a new all-time high at $2,195 on Coinbase. ETH 3.49% Ethereum / USD ETHUSD $ 2,141.37
Volume 24.93 b Change $74.73 Open $2,141.37 Circulating 115.42 m Market Cap 247.15 b
9 h Total Value Locked (TVL) in DeFi Surpasses $100 Billion; Revenue is Ready to Hit $1 Bln 10 h Bitcoin Aims for $62k and Ether Breaks Out into a New ATH as the Market Readies for Coinbase Listing 1 d Christie’s Now Auctioning CryptoPunks; Bids & Payment to be Accepted in Ether

Naturally, the greens have the leveraged traders yet again going all-in that has the funding rates soaring. As of writing, the highest Bitcoin funding rate is 0.2128% on OKEx, while for Ether, it is 0.2235% on Binance.

“Bitcoin shorts just got steamrolled by a wave of leveraged longs. Binance quarterly basis just went from 34% to over 50% annualized, in three hours. Ethereum at all-time highs” noted trader and economist Alex Kruger.

The biggest event in the crypto market right now is the Coinbase listing next week.

The largest cryptocurrency exchange in the US, Coinbase, is all set to make its trading debut on Nasdaq under the ticker “COIN” on Wednesday.

Just this week, the exchange announced its Q1 results that revealed a total revenue of approximately $1.8 billion, about $800 million in net income, $335 billion trading volume, and 56 million verified users.

“In a traditional stock portfolio, it gives exposure to an exchange platform that generates trading fees on crypto,” Greg Foss, Bitcoin investor and chief financial officer for Validus Power Corp, told Bloomberg.

“Those fees increase with volumes and volumes typically increase with prices, so there is a beta trade there.”

Coinbase is taking the direct listing route in which it won’t raise any new capital. It will allow shareholders to trade their shares without a lock-up period, which is typical in an initial public offering (IPO).

In the final week of trading on Nasdaq’s private market, Coinbase was valued at about $90 billion.

“For a crypto investor that also buys stocks, it has the ability to diversify risks as there is a very profitable exchange platform that trades on another venue (stock exchange) whose flows of buyers and sellers can be less correlated than many crypto prices.”

Major Exchange Market Caps

Source: Delphi Digital

Regardless of which crypto assets are performing the best, Coinbase will win in all the situations as to whether the market is going up or down, the trading volume soars the same.

The market expects a lot of volatility next week as COIN begins trading and starts as a beta play on the crypto volatility and price action.

Ahead of this, exchange tokens are also enjoying repricing, with FTX’s FTT token up 760% YTD. Leading crypto exchange Binance’s native token BNB is also hitting new highs every day, now targeting $500. Growing usage of Binance Smart Chain (BSC), due to high fees on the Ethereum blockchain pricing out small users, is also pushing it upwards. BNB 7.04% Binance Coin / USD BNBUSD $ 471.65
Volume 6.15 b Change $33.20 Open $471.65 Circulating 154.53 m Market Cap 72.88 b
9 h Total Value Locked (TVL) in DeFi Surpasses $100 Billion; Revenue is Ready to Hit $1 Bln 10 h Bitcoin Aims for $62k and Ether Breaks Out into a New ATH as the Market Readies for Coinbase Listing 1 d Ledger Wallet And Shopify Face Class-Action Suit After Rogue Employee Leaks User Data

“The Coinbase IPO and BSC narratives perfectly coalesced for CZ to once again flex the social and financial capital of the behemoth that is Binance, and by extension, himself,” noted trader Hsaka.

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Author: AnTy

Christie’s Now Auctioning CryptoPunks; Bids & Payment to be Accepted in Ether

Christie’s Now Auctioning CryptoPunks; Bids & Payment to be Accepted in Ether

Traditional auction house Christie’s is now auctioning CryptoPunks after getting involved with non-fungible tokens through Beeple’s $69 million digital artwork, the third most expensive work by a living artist. And much like the last time, Christie’s will accept bids and payment in Ether (ETH). Christie’s noted,

“For the first time, 5,184 pixels’ worth of a revolutionary NFT project will go up for auction at a traditional auction house, courtesy of the project creators and pioneers themselves.”

Nine rare CryptoPunks from Larva Labs will be sold on 13 May at Christie’s 21st Century Evening Sale. Trader CL of eGirl Capital commented,

“Crypto culture going mainstream, all digital collectibles that are first of its kinds will do extremely well digital world repricing.”

The oldest NFT project on Ethereum blockchain, CryptoPunks, was created by New York-based software company Larva Labs, founded by Matt Hall and John Watkinson in 2017.

CryptoPunks are a limited collection of 24×24, 8-bit-style pixel art. While anyone can see it and save a copy of the image from Larva Labs’ website, there will only ever be one rightful owner, verifiable by the blockchain technology.

As of early this month, over 8,000 sales had been recorded in the previous 12 months, with an average sale price of 15.45 Ether (about $30,400). The total value of all sales is 127,360 Ether (more than $250 million).

However, while the involvement of such a big and old auction house is all good for getting mainstream attraction with others like Sotheby’s also coming in, given the high markup these auction house charges, the crypto industry needs to do it in-house.

While Mark Cuban argues that these auction houses bring in customers with big bags, the biggest bid on Beeple was made by the crypto market participants.

Given that Bitcoin is just over a decade old only and NFTs only exploded into the scene just this year, the market may need a bit of time and more players to expand the NFT sector and make it economical.

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Author: AnTy

DeFi Protocol BadgerDAO Partners With Crypto Custody Firm Fireblocks

DeFi Protocol BadgerDAO Partners With Crypto Custody Firm Fireblocks

Decentralized finance (DeFi) protocol Badger DAO has partnered with Fireblocks to expose institutional Bitcoin to the DeFi ecosystem.

BadgerDAO Bringing BTC To DeFi

BadgerDAO disclosed in a blog post that it would be integrating with Fireblocks, a digital asset storage for institutional investors.

With this partnership, BadgerDAO aims to enable over 200 institutional Fireblocks clients to securely store Badger assets on their DeFi platform and put their Bitcoin to work through the Badger protocol.

Commenting on the partnership and integration benefits, BadgerDAO founder Chris Spadafora said that the integration wants to make Badger’s vaults and products more accessible to institutional investors, not just retail DeFi investors.

“Our intention is to further help onboard institutional Bitcoin holders to DeFi. With Badger smart contracts being easily integrated by anyone/company without our permission, we anticipate many more centralized businesses servicing the institutional market to be powered by Badger.”

Once Fireblocks integrate with its flagship product, the Sett vaults, anyone with the Fireblocks app or browser extension would be able to deposit tokenized Bitcoin such as wBTC directly into any of the automated yield-producing vaults.

The protocol claims to have over $1 billion worth of tokenized Bitcoin in its vaults from automated yield aggregation strategies. The collaboration will also enable Institutional clients to securely hold their Badger tokens and interest-bearing assets on the Fireblocks platform.

Fireblocks is a platform that offers a secure infrastructure for moving, storing, and issuing digital assets for institutional clients. The company, which recently secured $133 million in a Series C funding round, counts institutions like BNY Mellon, Galaxy Digital, Genesis, and others as clients.

BadgerDAO’s Stablecoin, CLAWS

Launched in 2020, BadgerDAO is popular for its Badger token and Sett vaults product. The Sett vault helps users deposit different types of tokenized Bitcoin, such as wBTC, renBTC, or tBTC, to generate an automated yield.

The Bitcoin-focused DeFi platform also recently launched its stablecoin called CLAWS. In an announcement in February, BadgerDAO explained what its new offering will do and why the crypto space needs another stablecoin. It also noted that CLAWS was more of a “yield dollar” similar to those offered by the UMA protocol.

A yield dollar is a collateralized asset with an expiration date. They are minted when a user provides collateral and at some LTV (Loan-to-Value) ratio.

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Author: Jimmy Aki